All About Bike Insurance Zero Depreciation Cover

Updated Feb 14, 2022

Zero Depreciation cover for two-wheeler insurance helps in saving significant amount of cost on replacement and repair of your bike parts.

Insurers of two-wheelers tend to depreciate their vehicles over time. Due to wear and tear, their value decreases over time. This also applies to bikes. Insurance claims are directly affected when their value declines.

However, if you don’t want your bike’s claim amount to get reduced, you can opt for a Zero Depreciation Cover.

What is Bike Zero Depreciation Cover?

The zero depreciation or zero depreciation cover, also known as bumper to bumper insurance, is optional coverage available with standalone own damage or comprehensive bike insurance plans. During the process of settling a claim, it is deductible by default. It protects your bike from depreciation.

Opting for this add-on cover with your own-damage bike insurance policy or comprehensive plan can help you receive a higher claim amount. To own this add-on cover on the top of the standard bike insurance plan, you just need to pay for an additional amount as premium.

Let’s have a look at the functionality of this add-on to gain a better understanding of it. The table below will exhibit the impact of this Zero Depreciation Cover on the depreciated value of your bike in accordance with its age and parts.

Features of Zero Depreciation Cover

Age of Bike	Depreciation Rate Without Zero Depreciation Cover	Depreciation Rate With Zero Depreciation Cover
Under 6 months	Nil	0%
6 months to 1 year	5%	0%
1-2 years	10%	0%
2-3 years	15%	0%
3-4 years	25%	0%
4-5 years	35%	0%
5-10 years	40%	0%
Above 10 years	50%	0%

Part of Bike	Depreciation Rate Without Zero Depreciation Cover	Depreciation Rate With Zero Depreciation Cover
Paint work / Rubber / Nylon / Plastic parts	50%	0%
Fibre glass parts	30%	0%
Glass parts	Nil	0%

Precisely, this add-on covers the depreciation amount of your bike and offers compensation for repair and replacement of depreciated parts during the claim settlement process. It will cover all the parts of your bike by 100%, except tubes, tyres, & batteries, which are covered at 50%.

Benefit of Bike Insurance Zero Depreciation Cover

The cost of a two-wheeler insurance policy enhances with the inclusion of a zero-depreciation bike insurance add-on cover and becomes higher than the plan with no depreciation cover. However, the benefits provided by the zero-depreciation add-on cover completely worth the increased cost. Here are some major benefits which you can avail with the zero-depreciation cover in your bike insurance policy:

It helps you save money by getting a higher amount of claim under your bike insurance plan and reduces your out-of-pocket expenditure.
It helps gain the complete bike insurance claim amount after its damage or loss without facing any sort of deduction in the form of depreciation.
Zero-depreciation cover serves as a layer of financial protection for your two-wheeler vehicle and its spare parts during their repair and replacement.

Therefore, a two-wheeler insurance policy with zero depreciation add-on cover is quite beneficial and you can enjoy it at the time of bike insurance policy renewal. When it comes to a bike insurance plan, with this add-on cover you are assured of getting a great compensation amount for any damage or loss sustained by your two-wheeler vehicle, which brings a huge amount of relief.

Zero Depreciation Cover won’t be applicable in some of the scenarios, which are as follow:

Any damage to bike due to any mechanical defect.
Compensation for total loss or damage is excluded.
The cost incurred on the repair or replacement or depreciation amount of the parts, with no coverage in the policy, will not be compensated.

The zero depreciation cover is the most selling add-on cover. People with a new bike or bikes with costly spare parts generally opt for this cover.

Take Away

You can broaden the coverage of your standard bike insurance policy with a Zero Depreciation Cover. As a result, your claim amount will be higher due to the depreciated value of your bike. This insurance policy is most beneficial to people with new or expensive bikes. It varies from insurer to insurer whether a policyholder is eligible for it. you can increase the amount of your claim by adding this cover.

Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Written by Sharad Bajaj

Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. Read More